Oppenheimer Rochester Funds Group Securities Litigation
Berger Montague is pleased to inform shareholders who invested in certain municipal bond funds managed by OppenheimerFunds, Inc. and distributed by OppenheimerFunds Distributor, Inc. that the Lead Plaintiffs in six consolidated class action lawsuits have reached an $89.5 million settlement with OppenheimerFunds, Inc. and other Defendants.
The six class actions, which were consolidated in June 2009, charge OppenheimerFunds, Inc., OppenheimerFunds Distributor, Inc., the Funds, and certain of their trustees and officers with violations of the federal securities laws, including violations of the Securities Act of 1933, which prohibits materially false and misleading statements in registration statements and prospectuses of the kind allegedly used to sell shares in the Funds.
According to the complaints, the Funds’ assets were managed in a way that was inconsistent with the Funds’ stated investment objectives and with the Funds’ stated limits on illiquid securities, inverse floaters, and other assets. The complaints further allege that when risks embedded in the Funds materialized, the value of the Funds’ shares declined significantly.
Defendants have denied all allegations and aggressively litigated the cases. Prior to reaching a settlement, Plaintiffs had successfully briefed and defended their allegations against Defendants’ motions to dismiss in the six cases as well as a motion for partial summary judgment.